Press Release: Apollo Investment Corporation Reports Financial Results for the Quarter Ended December 31, 2020

· 02/04/2021 16:00

Three Months Ended Nine Months Ended December 31, December 31, -------------------- (in millions)* 2020 2019 2020 2019 -------- ---------- ---------- --------- Net investment income $ 28.2 $ 36.2 $ 84.4 $106.5 ---- ----- ----- ----- Net realized and change in unrealized gains (losses) 4.9 (35.9) (14.9) (75.3) -------- --------- --------- ------ Net increase in net assets resulting from operations $ 33.2 $ 0.3 $ 69.5 $ 31.2 ---- ----- ----- ----- (per share)* (1) -------- ---------- ---------- --------- Net investment income on per average share basis $ 0.43 $ 0.54 $ 1.29 $ 1.58 ---- ----- ----- ----- Net realized and change in unrealized gain (loss) per share 0.08 (0.54) (0.23) (1.12) -------- --------- --------- ------ Earnings per share -- basic $ 0.51 $ 0.00 $ 1.06 $ 0.46 ---- ----- ----- -----Three Months Ended December Nine Months Ended 31, December 31, ----------------- --------------------- (in millions)* 2020 2019 2020 2019 -------- ------- -------- ----------- Investments made in portfolio companies $ 157.2 $530.0 $ 400.9 $1,442.0 Investments sold (17.8) (14.9) (101.1) (44.5) ------- ------ ------- -------- Net activity before repaid investments 139.4 515.1 299.9 1,397.5 Investments repaid (269.5) (344.2) (628.0) (804.6) ------- ------ ------- -------- Net investment activity $(130.1) $170.9 $(328.2) $ 593.0 ------ ----- ------ ------- Portfolio companies at beginning of period 147 139 152 113 Number of new portfolio companies 7 16 10 51 Number of exited portfolio companies (11) (4) (19) (13) ------- ------ ------- -------- Portfolio companies at end of period 143 151 143 151 ------- ------ ------- -------- Number of investments made in existing portfolio companies 35 42 62 59 ------- ------ ------- --------($ in billions, June March except per share December September 30, 31, December 31, data) 31, 2020 30, 2020 2020 2020 2019 ---------- ----------- ------- ------- ------------ Total assets $ 2.58 $ 2.65 $ 2.81 $ 2.87 $ 3.06 Investment portfolio (fair value) $ 2.48 $ 2.59 $ 2.67 $ 2.79 $ 2.97 Debt outstanding $ 1.51 $ 1.60 $ 1.76 $ 1.79 $ 1.79 Net assets $ 1.02 $ 1.01 $ 1.00 $ 1.02 $ 1.22 Net asset value per share $ 15.59 $ 15.44 $15.29 $15.70 $ 18.27 Debt-to-equity ratio 1.49 x 1.59 x 1.76 x 1.75 x 1.47 x Net leverage ratio (1) 1.43 x 1.56 x 1.66 x 1.71 x 1.43 x-- Net investment income per share for the quarter was $0.43 compared to $0.43 for the quarter ended September 30, 2020 -- Net asset value per share as of the end of the quarter was $15.59 compared to $15.44 as of September 30, 2020, an increase of 1.0% driven primarily by a net gain on the corporate lending portfolio(1) and a realized gain on a non-core renewable investment -- New investment commitments made during the quarter totaled $108 million(2) -- Gross fundings during the quarter totaled $157 million primarily consisting of $97 million of term loans and $52 million of revolvers -- Gross exits during the quarter totaled $287 million primarily consisting of $3 million of term loan sales, $184 million of term loan repayments, and $85 million of gross revolver paydowns -- Net paydowns during the quarter totaled $130 million primarily consisting of $90 million of net term loan paydowns and $33 million of net revolver paydowns -- Net leverage(3) as of the end of the quarter was 1.43x, down from 1.56x as of September 30, 2020 -- Declared a distribution of $0.31 per share and a supplemental distribution of $0.05 per share for the quarter ending December 31, 2020 -- Amended and extended the Company's Senior Secured Facility (the "Facility") in December; Final maturity extended to 2025; Pricing and advance rates were unchanged on the Facility(4) -- $330 million of immediately available liquidity and $313 million of additional capacity under the Facility as of December 31, 2020(5)

Apollo Investment Corporation Reports Financial Results for the Quarter Ended December 31, 2020

Fiscal Third Quarter and Other Recent Highlights:

NEW YORK, Feb. 04, 2021 (GLOBE NEWSWIRE) -- Apollo Investment Corporation (NASDAQ: AINV) or the "Company," or "Apollo Investment," today announced financial results for its third fiscal quarter ended December 31, 2020. The Company's net investment income was $0.43 per share for the quarter ended December 31, 2020, compared to $0.43 per share for the quarter ended September 30, 2020. The Company's net asset value ("NAV") was $15.59 per share as of December 31, 2020, compared to $15.44 as of September 30, 2020.

On February 4, 2021, the Board of Directors declared a distribution of $0.31 per share payable on April 5, 2021 to shareholders of record as of March 19, 2021. On February 4, 2021, the Company's Board also declared a supplemental distribution of $0.05 per share payable on April 5, 2021 to shareholders of record as of March 19, 2021.

Mr. Howard Widra, Apollo Investment's Chief Executive Officer commented, "During the quarter, we continued to reduce the Fund's net leverage ratio with net repayments of $130 million which reduced AINV's net leverage to 1.43x at the end of December, near the low end of our target range of 1.40x to 1.60x. Notably, repayments included non-core assets and second lien positions, assets we continue to seek to monetize. Our net leverage ratio also benefited from net appreciation on the portfolio as well as retained earnings. Our corporate lending portfolio continued to recover some of the unrealized losses incurred during the March 2020 quarter. Given our reduced leverage, we have begun to shift our focus to making new investments." Mr. Howard Widra continued, "During the quarter we were pleased to extend our revolving credit facility by nearly two years until 2025 which greatly enhances our liquidity position as we continue to navigate the current environment."

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(1) Corporate lending portfolio includes leveraged lending, life sciences, asset based and lender finance. Excludes Merx Aviation Finance, LLC ("Merx") and non-core and legacy assets.

(2) For corporate lending portfolio.

(3) The Company's net leverage ratio is defined as debt outstanding plus payable for investments purchased, less receivable for investments sold, less cash and cash equivalents, less foreign currencies, divided by net assets.

(4) The Company extended the final maturity of Facility by approximately two years from November 19, 2023 to December 22, 2025. Total commitments to the Facility will remain $1.81 billion until November 19, 2022 and will decrease to $1.705 billion thereafter.

(5) As of December 31, 2020, aggregate lender commitments under the Senior Secured Facility (the "Facility") totaled $1.81 billion and there were $1.17 billion of outstanding borrowings under the Facility and $0.2 million of letters of credit issued under the Facility. Accordingly, there was $643 million of unused capacity under the Facility as of December 31, 2020, which is subject to compliance with a borrowing base that applies different advance rates to different types of assets in the Company's portfolio. As of December 31, 2020, the Company had immediate access to $330 million under the Facility based on the Company's borrowing base and $313 million of additional capacity.

FINANCIAL HIGHLIGHTS

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(1) The Company's net leverage ratio is defined as debt outstanding plus payable for investments purchased, less receivable for investments sold, less cash and cash equivalents, less foreign currencies, divided by net assets.

PORTFOLIO AND INVESTMENT ACTIVITY

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* Totals may not foot due to rounding.

OPERATING RESULTS

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* Totals may not foot due to rounding.

(1) Based on the weighted average number of shares outstanding for the period presented.

SHARE REPURCHASE PROGRAM *

During the three months ended December 31, 2020, the Company did not repurchase any shares.

Since the inception of the share repurchase program and through February 3, 2021, the Company repurchased 13,654,578 shares at a weighted average price per share of $16.34, inclusive of commissions, for a total cost of $223.1 million, leaving a maximum of $26.9 million available for future purchases under the current Board authorization of $250 million.

* Share figures have been adjusted for the 1-for-3 reverse stock split which was completed after market close on November 30, 2018.

LIQUIDITY

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February 04, 2021 16:00 ET (21:00 GMT)